How can Docker Compose improve development workflows?

Docker Compose enhances development workflows primarily by simplifying the creation of isolated application environments. This tool allows developers to define multi-container applications through a simple YAML configuration file, which streamlines the process of setting up the entire stack required for the application to run.

Creating isolated environments for applications is crucial as it ensures that different applications can run on the same machine without conflict over dependencies or service versions. By defining a consistent setup across different environments—development, testing, and production—Docker Compose helps in maintaining uniformity, which is vital for efficient workflows. Developers can easily replicate their application they work on locally or share with teammates, thus simplifying collaboration and reducing setup time.

In contrast, while creating isolated environments for individual containers is part of Docker's functionality, Docker Compose focuses more on managing multi-container applications as a whole. It does not perform automatic backups of container data, which makes option C less relevant. Lastly, option D misunderstand the tool's purpose, as Docker Compose has a significant impact on development workflows by simplifying deployment and management processes.